The Benefits

The Benefits of a Life Insurance Retirement Plan, under Internal Revenue Code Section 7702, are many:

LIRP Benefits Summary

  • Unlimited contributions (premiums)
  • Meaningful income tax-free death benefits, substantially more than any other alternative
  • Tax-deferred growth of cash surrender values
  • Tax-free retirement income*
  • Tax-free loans at ANY age - There's no 10% penalty tax for retiring before age 59½
  • Policy death benefits and cash surrender values are assignable as collateral
  • No tax penalty or tax liability when used to secure a loan.
  • No required minimum distributions (RMDs) like an IRA or qualified plan, like a 401(k), 403(b), or 457 plan, so you can defer after age 70½.
  • Tax-free income does not increase income tax liability on Social Security retirement benefits.
  • Simple plan administration - No financial planning fees!
  • No forms to file with the IRS (business owned policies ARE required to file forms)
  • Potential asset protection from creditors and predators (varies by state, please consult with your legal counsel)
  • Privacy - policy cash values are generally exempt from disclosure when applying for college financial aid

For a FREE initial consultation, contact us today!

*Surrenders to basis are income tax-free, loans are income tax-free as long as the policy matures and pays a death benefit.

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